CPAs – keep a close eye on your bank account

A ‘continuous payment authority’ is a type of regular automatic payment that you can set up using your debit or credit card

The authority is linked to the bank or credit card account that your card is linked to. It’s a popular method of making regular payments – it’s favoured by many businesses, including gyms, internet service providers and even payday loan providers.

Top tip

Failure to keep a close eye on your bank account, and continuous payment authorities (CPAs) or recurring payments could end up costing you hundreds of pounds a year. CPAs are often the preferred payment method for insurers, as well as companies offering ongoing delivery, downloading or reporting services. So whether you have home insurance with The AA, or have signed up to a service such as Amazon Prime, you will keep being charged on a monthly or annual basis until you cancel the CPA. That’s why it’s worth checking your bank account regularly to ensure you are not being charged without your knowledge.

NB If you do spot a payment you did not mean to make, cancel your contract or membership and contact the company to ask for a refund. You can also ensure that no further payments are taken by emailing or calling your bank and asking it to cancel the CPA.